Once the pre-delivery planning is complete, the next phase in baby planning is coming up with a financial plan for the hospital expenses. There are several facilities made available for women under the NHS, however, the process of delivery can be expensive under a private delivery option.

The NHS vs Private Delivery

The National Health Service (NHS) is a government funded healthcare service that allows citizens to pursue medical treatments with free or reduced costs. In the cases of delivery, the NHS offers women the option to complete the delivery, completely free of cost. However, the women using the NHS would be required to give birth in an NHS hospital. The NHS presents pregnant women with numerous advantages, such as making several services free after pregnancy, which were previously charged.

On the other hand, private deliveries can be quite expensive. Private deliveries take place in private hospitals. These cater more to women who require additional services during and before the delivery, such as 3D scans, during the prenatal checkups and visits.

Another option for delivery is home birth. Home births are carried out by licensed midwives. The midwives may work independently, they may work for a private medical facility, or they may be provided by the NHS. However, in the case of the latter, there are area restrictions.

All in all, the cost of expenditure in the case of NHS and Private deliveries is vastly different.

  • If you choose the NHS, the Obstetrician fee would be free.
  • If you choose the NHS, the prenatal ultrasounds would be free.
  • If you choose the NHS, the cost of delivery for regular, natural birth is free.
  • If you choose the NHS, the cost of delivery for a cesarian birth is free.
  • If you choose a private care facility, the prenatal ultrasounds can cost around £1,000.
  • If you choose a private care facility, the total Obstetrician fee would cost around £3,500 – £8,000.
  • If you choose private care facilities, the cost for a regular, natural birth can range from £2,000 – £6,000.
  • If you choose a private care facility, the cost of a cesarian birth may be around £7,300.

Taking the aforementioned into consideration, it is essential to opt for the NHS delivery program, especially if you are on a budget.

Can a non-resident deliver a baby under the NHS?

If you are visiting the UK under a tourist, work or student visa, and you are living working in the United Kingdom, you are provided with the opportunity to use the NHS. Additionally, if you are an EEA national insured by another European state, you are also entitled to use the NHS. Another group of individuals who can avail this service includes those groups who are exonerated from categorisation. These groups may include refugees, legal residents (for more than one year), asylum seekers, self-employed individuals, as well as foreigners employed in a UK-based organisation.

If you do not fall into the aforementioned categories, you would be required to pay for the medical expenses. With that said, the United Kingdom has a policy that makes it obligatory for hospitals and medical care facilities to avoid refusing maternity care. In the case that you are unable to pay the advance fee for delivery, you can still get your child delivered. However, you will have to repay the hospital at a later date.

Post-delivery financial planning

As stated earlier, the financial planning for a baby does not stop after the delivery. There are several other factors that you need to take into consideration after you welcome a new member to your family. The following things need to be taken into consideration when creating an after-birth budget.

Expense # 1: Health Insurance

The most important post-delivery cost is the expense of adding your child to your health insurance plan. Under the current policy, you can add your child to your health insurance plan until they are twenty-six years of age. However, it is recommended to provide them with coverage, as soon as possible, as your child may experience illness after delivery.

Expense # 2: Life Insurance

For parents, one of the most difficult things to think about maybe losing the child. However, getting life insurance on your child is essential, as it can financially prepare you for any unfortunate event. Getting life insurance for children is not as expensive. The main cost that is covered by the life insurance policy may be the costs for the funerals, along with other similar costs. The life insurance for a child can last until your child is able to earn for themselves.

Expense # 3: Childcare services

It takes a village to raise a child. Availing the services of that village can be quite expensive. Taking this into consideration, it is imperative to include the cost of hiring child care services into your new monthly budget. The childcare services can include the cost of a nanny, daycare centre or a babysitter. You would need to consider the cost of childcare services after your maternity or paternity period has concluded.
With that said, you can cut the cost in this area by taking assistance from a family member. If you or your partner’s parents live in the area, you can ask them to look after your child while you are at work or a social event.

Expense # 4: Retirement Fund

The increasing amount of childcare expenses can force new parents to forget about their personal savings. However, after you welcome your child into the world, it is more important than ever to give regards to the retirement fund. The retirement fund should be started as early as possible, as you never know when you may have to retire. With a retirement fund created, your child wouldn’t have to burden the responsibility of taking care of you financially during your old age.

Expense # 5: Monthly Budget

With an additional member in the family, the cost of the monthly budget is bound to grow as your child ages. Considering your new needs, it is essential to form a new monthly budget to accommodate the needs of your child. A freshly developed budget can help you identify the hike in costs and expenses brought out by having a child. Based on this, you can manage your spendings accordingly.

Expense # 6: Cost of Schools

As your child ages, other costs are bound to pile up. One of the most important factors for consideration is the cost of your child’s education. While public education is free, private schools can cost around £14,100 (in case of a  day school) and £32,300 (in the case of boarding schools).  Depending on your budget, you can enrol your child in the right educational institution.

University fund

Parenthood comes with numerous responsibilities. Among them, is creating a university fund for the child. Considering the elevated costs of higher education, it is imperative to start a university fund for your child from their early years. To create a university fund, take the following tips into consideration.

Set up a regular savings account

A regular savings account is the most effective approach for saving up for a university fund. This account requires you to deposit a specific amount into the account on a monthly basis. This amount is determined by the account holder, therefore, you can set the rate as per your convenience. You can discuss the details for the account with your preferred bank.

Try the short-term fixed-rate bonds (along with regular savings account)

The short-term fixed-rate bonds offer a higher rate of interest, in contrast to the easy access savings accounts and the regular saving accounts. However, despite that, you can still access your money after a short period of time. The most effective way to benefit from the short-term fixed-rate bond is by using this strategy alongside the regular savings account. With the increasing rate of interest, you can save up a large sum of money for your child’s higher education.

Set up a savings account for your child

Another option for a savings fund is to open an account for your child. A children’s savings account is opened by parents on their behalf. However, the child is unable to access the money until they turn eighteen years of age. With this account, you can save up the money for the university fund, and encourage the child to spend it wisely.

Take the cost of inflation into consideration

Before saving money, it is essential to consider the total amount that you need to save. To deduce this number, you can consider the total cost of tuition and living expenses of some of the most popular universities in the UK. Once this amount is calculated, you can add the five per cent of inflation charges to come up with an approximate amount for the university fund. While it is impossible to come up with an exact amount of money that you need to save, it is recommended to go for a higher digit. This way, your child’s education would not be compromised.

Conclusion

The overall cost of taking care of a child is extremely high. If you are planning to have a baby, it is crucial to prioritise financial planning as early as possible. The finances should be divided into three sectors. The pre-delivery, prenatal expenses, the hospital costs and the post-delivery expenses. The pre-delivery expenses include the total medical costs, grocery costs, clothing expenses, and the cost of classes and baby apparatus. Whereas, hospital costs can cover the cost of delivery, ultrasounds and other tests and screening. Lastly, the post-delivery expenses are concerned with the total cost of taking care of the baby, which includes making payments for health insurance, life insurance, groceries and other expenses relating to the baby.

Once you identify the expenses for each area, you can create an accommodating budget to cater to each requirement. Additionally, it is also recommended for parents to set up a university fund to give regards to the child’s future education. A university fund can be created by taking the total cost of education into consideration, and subsequently, setting up a savings account to collect the total money required to cover the cost.

Being a parent comes with a list of responsibilities. You can use the aforementioned guide to take care of financial obligations.